“I just want you to find me the least expensive policy” said a business client during a recent policy review. “Isn’t that your job as my agent? Margins are tight and I need to save money wherever I can.”
“Actually” I said “My job is to make sure that you are well protected in the event of a loss. We do look through several insurance carriers to find a competitive price for you but not at the expense of proper coverage”.
Over the years I’ve looked at hundreds of Business Insurance policies and helped many business owners that were unaware of some gaping holes they had in their insurance coverage.
Here I will highlight the three of the most common coverages that I find missing from business owner’s insurance policies when I do complimentary coverage reviews of the current policies with other companies.
Non-Owned Auto- You need to pick up an important order from the print shop so you send your employee, Sophie to go pick it up. The print shop is on her way home so she takes her own car, thinking she will head home after that. On her way to the store, Sophie doesn’t notice a cyclist in the bike lane and turns into him and severely injures him.
The cyclist retains an attorney, who discovers that Sophie was in fact on and errand for work. The attorney is now able to come after both Sophie’s personal auto insurance policy AND your Business. If you have the Non-Owned Auto endorsement on your policy, your insurance company will be liable. If you don’t, you will be liable so make sure you have it on your policy!
Stop GAP Coverage- In Washington, the department of Labor and Industries takes care of all workers comp claims when employees get injured on the job. This often lull’s business owners into a sense of false security.
Just because an employee is accepting workers comp payments from the state does not mean that they cannot come after you as well. Stop Gap coverage protects you if you are held liable for failing to provide a safe workplace in an injury lawsuit.
Employment Practices Liability (EPLI)- Protects employers from employee claims such as retaliation, sexual harassment, age discrimination, and wrongful termination. Many business owners wrongly assume that their General Liability coverage will protect them in this scenario. Did you know that you are three times more likely to be sued by an employee than you are to experience a fire?
Conclusion- These are three very important coverages that you need to make sure you have on your insurance policy if you own a business with employees. Ironically all three together often cost less than $500 per year to add to your policy, which is just under 42.00 a month. We think your business is worth the extra layer of protection.
If you would like to have a professional review your policy to make sure these vital coverages (and many more) are a part of your policy please feel free to give our office a call any time for a free policy review.